The New York State Department of Financial Services is responsible for regulating all financial services and products in New York. The New York State Department of Financial Services is responsible for reforming financial services in New York. It also aims to protect firms and consumers against financial crimes. In 2011, the New York State Legislature established the New York State Department of Financial Services by merging the New York State Banking Department with the New York State Insurance Department.
Today, the NYSDFS is the main regulator for many financial institutions. Its supervision takes in around 4,400 separate entities from the financial sector and more. However, they have offices across the state, their main center in New York City.
Divisions Of New York State Department of Financial Services
New York State Department Of Financial Services has five divisions:
The Insurance Division
The Banking Division
Financial Frauds and Consumer Protection Division
Capital Markets Division
Real Estate Division
What Are The Missions of The New York State Department of Financial Services?
NYSDFS aims to ensure financial stability by regulating financial institutions. The New York State Department of Financial Services aims to fight financial fraud and educate consumers about financial products and services.
To ensure the growth of the financial industry in New York.
Ensuring the continued safety of financial services and products for consumers and the safe conduct of their providers.
To check the reliability and soundness of financial institutions.
Encouraging providers to meet high standards of public responsibility, business practice, conduct, and ethics.
Implement regulations to combat financial crimes. Also, to control firms with audits.
Provide accurate information and educate users about financial products and services.
Attention to Organizations Under NYSDFS Supervision
As of January 1, 2017, financial institutions under the New York Banking Law are responsible for complying with anti-terrorism transaction monitoring and filtering program regulations established by the New York Department of Financial Services (NYDFS) . Accordingly, financial institutions must create a risk-based Anti-Money Laundering program to meet their obligations.
The obligations of businesses are:
- Examination of customer transactions with a risk-based approach.
- Compliance with applicable Bank Secrecy Act and AML laws and regulations.
- Creating an enhanced AML control program to detect organized crime such as money laundering and terrorist financing. (Internal Controls)
- Checking customers on the Office of Foreign Assets Control (OFAC) sanction lists.
- Reporting detecting money-laundering activities to authorized units.
- Monitoring customer transactions to combat money laundering and terrorist financing.
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Employing an AML compliance officer or money laundering reporting officer.
